Boris Vujčić: We have to bring down inflation because this is good for growth
Maybe we have now got used to extremely low interest rates, but we have to keep in mind that these are not normal interest rates that we had in the past – says Boris Vujčić, the Governor of the Croatian National Bank.
I would say that both the central banks, and any other central bank, have to do anything that is within their possibility to bring down inflation because this is good for growth. Of course, raising interest rates always has some cost in terms of economic growth, but high inflation has even higher costs – says Boris Vujčić.
Having a national currency can make it easier to pursue national economic objectives. It can also be useful in dealing with emergencies, and it protects citizens from possible problems in being forced to use foreign currencies. It is part of sovereignty.
We have welcomed the initiation of the tightening of monetary policies early in the Fall. Determining an “optimal” timing of the decision to change the monetary policy stance is difficult - says Alfredo Cuevas, economist at IMF, in an interview for Obserwator Finansowy.